Jump to content
  • 0

Uber


Michael97
 Share

Question

3 answers to this question

Recommended Posts

  • 0

Hi Michael, thanks for asking. 

As you mentioned, Uber made a takeover approach for the meal-delivery firm Grubhub with an aim to complete the all-stock deal as early as this month. The New York Times reported that Grubhub made a counter offer, asking for two shares of Uber for each of its own.

Uber is obviously trying to take on DoorDash, the largest food delivery company in the U.S., by combining its Uber Eats with Grubhub, which is currently valued at around $5.5 billion. 

If combined, these two would acquire a 55% market share. However, the takeover attempts have drawn strong criticism  For instance, Uber Eats’ market share would rise to almost 80% in New York, creating a monopoly.

“How is this better for the citizens in New York City? I think [regulators] will very keenly focus on that,” said William Kovacic, a former chair of the US Federal Trade Commission. 

Uber stock price gained around 2.5% yesterday on the news before the sellers were able to erase all gains and push the price action lower. The real winner of the day was Grubhub, who saw its shares skyrocket nearly 30% on the reported takeover talks. 


 

Link to comment
Share on other sites

  • 0

Hello Michael, thanks for asking the question.

Shares of Uber (NYSE: UBER) advanced 6% in Monday trading.

The ride-hailing company said its $2.65 billion takeover deal for Postmates Inc. will make the company one of the strongest competitors in restaurant and grocery delivery services. With the acquisition, Uber will extend its range of items delivered to consumers’ homes. 

The deal would also make Uber the second-largest restaurant delivery service in the United States by market share, after DoorDash Inc., according to research company Edison Trends. 
 

Link to comment
Share on other sites

  • 0

Hi Michael, thanks for being here.

At the start of the month, Uber (NYSE: UBER) purchased its long-time rival Postmates for $2.65 billion. The acquisition of Postmates will be a significant boost to Uber’s food delivery business. The ride-hailing company is now the second-largest company in this sector, after DoorDash.

The deal will enable Uber to make profits on potential revenue from the food delivery industry which has skyrocketed since the restaurants closed due to the pandemic.

Investors think Uber made the right move with the Postmates deal, resulting in rise of Uber’s shares by 6% on the day the deal was announced. Uber tried to buy Grubhub (NYSE: GRUB) at the start of the year but the deal couldn’t be completed. Nonetheless, the Postmates deal will probably bring many long-term wins to Uber.
 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...